Southwark Cathedral Development Trust Registered Office: Southwark Cathedral. London Bridge, London SEI 9DA Charity Registration number. 1069914 Report of the Trustees for the year ended 31" December 2023
CONTENTS Report of the Trustees Independent Examiner's Report Statement of Financial Activitie5 Balance Sheet 10 Notes to the Financial Statements
Report of the Trustees for the year ended 31" December 2023 The trustees submic their annual report and the financial statements for the year ended 31" December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note I to the accounts and Comply with ¢he chariry's trust deed, the Charities Act 201 l and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable t¢ charities preparing their accounts in accordance with the Financial Reportin8 Standard applicable In the UK and Republic of Ireland FRS102 (effective l January 2019). Legal and Administrative Information Full legal name and address Southwark Cathedral Development Trust London Bridge London SEI 9DA Telephone.. 020 7367 6700 Contact email address.. Tcd.14al%haw (W.SOUthw'ark.aD21ican.or Charlty number 1069914 Trustees The Very Reverend Andrew Nunn (resigned - 4 July 2024) The Very Reverend Dr Mark Oakley (appointed - 5 March 2024) The Rev'd Canon Michael Rawson, Interim Dean (appointed- l June 2023. resigned 5 March 2024) Mr Matthew Knight (Resigned - l April 2023) Ms Jennifer Page Mr Philip Sturrock Mr Richard Cornwell (appointed ljune 2023) Reverend Locwina Farodoye (appointed l June 2023) The Venerable Jonathan Sedgwick (appointed l June 2023) Correspondent and Treasurer Mr Edward Halshaw Bankers CAF Bank 25 King's Hill Avenue West Malling Ken( ME19 4JQ Independent Examiners Darren Harding ACA FCCA DChA Richard Place Dobson Services Limited 1-7 Station Road Crawley West Sussex RHIO IHT Southwark Cathedral Development Trust was establlshed by a Declaration of Trust dated 26 May 1998 as Southwark Cathedral Millennium Trust. The trustees approved a change to the trust's name at their meecing on 15 December 201 I to Southwark Cathedrnl Development Trust which came into effect on I" January 2012 following approval by the Charity Commi55ion. This decision was taken to reflect the changed nature of the trust's work following the completion of the Millennium Buildings project at SouthNvark Cachedral and the fact that future fundraising effort would focus on new projects. In 2019 rhe trustees made a starc towards changing the constitutional p051tlon to that of a Charitable Incorporated Organisacion (CIO). This work wa5 completed in September 2021 and the Chiriry Commission registered Southwark Cathedral Development Trust CIO under the charity number 1195743. As at 31 December 2023, the assets of
Southwark Carhedral Development Trust have not yet been transferred to the new entity. As a resulL Southvork Cathedral Development Trust continued in operation throughout 2023. Following advice from the Trust's solicitors. Eversheds SUtherId. thar the dissolution of the Trust could mean that any legacies to the former charity could fail should the Trust no longer exisL and, pending a Change in legislation in this area scheduled for autumn 2023 thaE it is hoped, will resolve this risk the trus¢ees agreed to continue co run Southwark Cathedral Development Trust as a "shell" charity uncil that legislation takes effect afcer which it would be wound up. A nominal sum sufficient to cover the Trust's liabilitie5 will be retained and excluded from the transfer of assets to Southwark Cathedral Development Trust CIO. Objectives The trust's objecrs are: the advancement of the Christian religion by such legally charitable means as the trustees from time to time deterniine" to provide funds to assist in extendin& developing and maintaining fabric. amenities and the work of Southwark Cathedral. There has been no change to these objects during the year. Structure, Governance and Management After several years of in2ctivity, the trustees in 201 l established the policy of supporting the Cathedral's fund-raising attivities and three aspects of cathedral lrfe.. the Cathedral'5 music: major new works and repairs to the Cathedral church and tts precincts identified by the Cathedral Architett either in the Quinquennial Inspettion reports or other proposals to the Cathedral Chapter" and new work based on social mi55i0n in the local area. The Trust grant aids the operation of the Cathedral's Fundraising Office, which, intsr alia, runs the Trusts day-to-day activities under the supervision of the Cathedral's Chief Operating Officer, Since 2016, the Trust has responded to applications from the Cathedral for funds only when these are approved by Chapter on the recommendation of the Cathedral Fundraising Panel which. on behalf of the Cathedral Chapter. is responsible for.. developing and implementing a coherent and fully researched fund-raising strategy and ensuring this strategy has the approval of the Chapter; working with the Cathedral Architect to identify fabric projects suitable for fundraising and $erIng those projects to the point at which a project manager is appointed and works commence. working with the Chapter to develop the social mission project including advising on the creation of a project management committee when the parameters of the project have been agreed by the Chapter; working with the D1ctOr of Music on fundraising for works to the organ and the choirs endowment fund through the creation of a calendar of events and identification of suitable major donors: forwarding requests, approved by the full team (including advisers), to the Development Trustees for the payment of grants to the Cathedral for specific projects. identifying and recruiting Patrons who are individuxls of excellence 2nd influence in various sectors of national life able and willing to a55iSt in fund-raising activities 2nd initiative5' developing a budget and sraffing plan. overseeing production of publicity, constructing fundraising events programmes and approving all applications to foundations and other grant givers. The Trust has five funds, four of which are restricced. The general fund is unrestricted and is used to make contributions to staff salaries and office costs associated with the Cathedral's fijndraising activities and certain other costs which cannot be directly attributed to fundraisin8 for a specific purpose. The restricted funds are: Fabric - to provide grants to the Cathedral for repairs to the Cathedral and its precincts defined a5 land within the "green line" agreed wirh the Cathedral fabric Commission for England under the care of Cathedrals Measure 2005. Bells - to provide gTrnt5 for capital works associated with the bells and the bell chamber; Mu51C - to receive endowment monies to be transferred to the Cathedr31's Choirs Endowment Fund to support the c05t of music. to provide regular grants to the Cathedral's Girls, and Boys, Choir5 from donations received. and to provide grants for work on the organ; Mission - to provide grants to the Cathedral to help it realise its mission priorities. The Fundraising Panel membership is as follow5: The Very Reverend Dr Mark Oakley The Reverend Canon Michael Rawson Interim Dean. Jus(ine Horseman Sewell. Chief Operating Officer
assisted, in an advi50ry capacity, by.. Jennifer Page and Richard Cornwell The Panel meets on a regular ba51S. Decisions on the use of trust funds for projects are raken by the full trustee board. The trustees 2re responsible for decisions abouc investment or other allocation of trust funds in advance of expenditure on approved projects TrUse$ meet ac least twice a year and additional business can be condurted by email between meetings. New trustees are periodically soughr to ensure that a balance of skills exists within the trustee body. A skills audit is underraken whenever vacancies occur and individuals identified as having the required skills are approached by the Chairnian and invited to become a trustee. The Crustees have paid due regard to the Charities Commission guidance on public benefir. Risk The trustees consider that the maln risks arise from adverse movemenrs on Investments and from miss-handling of transacoons be(ween the Trust and the Cathedral. Trustees keep under review the performance of invested monies. In general, trustees believe systems and controls designed co mitigate the major risks to which the trust is exposed, as identified by them, are sacisfattory. Achievements and Performance Following the departure of Tom Poole, the Fundraiser in early December 2022 there was a hiatus in active fundraising Discussion between the trustees and the Cathedral Chapter on the scructure of future fundraising are now complete and a new fundrdiser will be in place during 2024. During 2023 2 number of donations were received towards the running costs of the Boys.. Girls, and Merbecke Choirs. During 2023 the Trust received £2,389 towards its main areas of fundraising. The trustees made grnnt5 to Southwark Cathedral of £142,990. At the year end, the balances of SCriC¢ed funds were as follows.- Fabric Fund - £51,904 which is being held for future access works in the Cathedral: Bells Fund - £9.157 which is bein8 held pending additional works on the bell-frnme consequential on the 2016 re-hanging of the bells. Music Fund- £4,900 consisting of amounts due to be paid over to the Cathedrdl in 2024. Mission Fund - £49,259 held for future grdnts to supporc the Chapter's plans for social mission activity from a refurbished All Hallows Church site. Unrestricted Fund - £757,860. In addition to resources to grdnt fund the Cathedral's Development Office. the remaining funds are being held pending a decision on how best to use the money. A more detailed explanation is contained in the Reserves Policy section below. Financial Review Reserves policy Prior to 2017 it was the aim af the trustees to p35s funds to Southwark Cathedr2125 quickly a5 was compatible with the project approvals, having regard to agreed procedures and trustee responsibilities= in general, therefore. the trustees aims were to maintain reserves only to cover one year's expected administrative and Staffing costs of the Cathedral Development Office. Following receipt in March 2017 of the John Trevor Williams legacy (£688.266). the trustre5 decided to keep this unrestricted legacy in the general fund pending a decision on how best to use the money. There is therefore currently a larger reserve than is needed simply for Development Office purposes. The trustees consider that these reserves should be used for projett5 which offer long-term improvements to the physical state of the fabric. to the preservation of its musical tradition or to the mission prioritie5 of the Carhedral but have not formed a view as to the proportion to be devoted to each. Based on currenr discussions with che Cathedral Chapter. and ID line with this formulation, however, the trustees, intention is that a significant proportion of this larger reserve should be used to fund access improvement works at the Cathedral The trustees. on the basis of infonnation provlded to date by the Cathedr31 Chapter believe that applications for grants
for foreseeable projecrs will be spread over a number of years and have therefore allocated a substantial portion of current funds to CCLA investments. It will be for the trustees of the successor body {SCDT CIO) to determine a reserves policy for the longer term. Summary of result5 The Statement of Financial Actlvities on page 8 shows that the trusc started the year with a fund balance of £959,617. Total income during the year was £27,729 (2022 - £13,096). Development Office costs were £nil (2022 - £40,968). Fundraising costs amounted to Lnil in 2023 (2022 - £19). The trusc made grants to Southwark Cathedral of £142,990 in 2023 (2022 - £35,736). Of this. £51 k was given for che access project, £23k for the Haryard Chapel enabling works and £43 k for the Queen Elizabeth Room. The investments in CCLA Property and Investment Funds were subject to unrealised gains of £30.604 during the year. Total funds carried forward at the year-end are £873,080. On behalf of the trustees The Very Reverend Dr Mark Oakley Chairman of the Trustees Date: 15 2olf
Independent Examiner's Report to the Trustees of Southwark Cathedral Development Trust for the year ended 31 st December 2023
I report to the trustees on my examination of the financial statements of Southwark Cathedral Development Trust for the year ended 31" December 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 20 I I[(] the 20 I I Act).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 20 I I Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section I 45(5)[(] b) of the 20 I I Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS I 02[) ] in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on I April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after I[J] anuary 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- I. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act[; ] or 2. the financial statements do not accord with those records[; ] or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Se,
Darren Harding ACA FCCA DChA
Richard Place Dobson Services Limited
1-7 Station Road Crawley West Sussex RHIO IHT
28 October 2024 Dated ....................................... .
7
Southwark Cathedral Development Trust Statement of Financial Activities for the year ended 31" December 2023 Unrestricted Restricted Endowment Funds Funds Funds Totsl Funds Totsl Funds 2022 Note 2023 Income frorn. Donations and legacies Trading and fundraising activioes Other 700 11.689 12.389 13.059 15.340 15,340 37 Total income 16.040 11,689 27.729 13,096 Expenditure on: Raising Funds Charitable act4vi¢ie5 1.880 110.238 1,880 142,990 42,882 35,936 32.752 Total expendlture 112,118 32,752 144,870 78,818 Net income before Investment gains (96,078) (21,0631 (65,722) Net gain51(losses) on InveSents 28,101 2,503 30.604 (95,783) Net income 167,977) (1 $.5601 186.537) (161,50>) Transfers between funds Net movement in funds (67.977) (18,560) {86,537) {161,505) Funds reconcillation Funds brought forward Total Funds Carried Forward 825.837 133.780 959,617 1.121 122 757,860 11 S.220 873,080 959,617
Southwark Cathedral Development Trust Statement of Financial Activities for the year ended 31" December 2022 Unrestrlc¢ed Restricted Endowment Funds Funds Total Funds Note Funds 2022 Income from: Donations and legacies Trading and fundraising attivities Other 13.059 13.059 37 37 Total income 37 13,059 13,096 Expenditure on: PAising Funds Charirable ottivities 42,863 200 19 42,882 35,936 35,736 Total expenditure 43,063 35,755 78.818 Net income before investment gains (43,026> (22,696) (65,722) Nec 83ins1(1055e5) on investments (84,948) (10,835) (95,783) Net income (127,974) (33.531) (161,505) Transfers between funds Net movement in funds (127,974) 133,531) (161,505) Funds reconclllation Funds brought forward Total Funds Carried Forward 953,811 167.311 1.121,122 825,837 133,780 959,617
Southwark Cathedral Development Trust Balance Sheet as at 31" December 2023 Note Unvestrlcted Restrlcted Endowment Total Funds 2023 Total Funds 2022 Current Assets Debtors Cash ac bank and in hand Invesonents 5.933 753.727 21.206 94,014 27,139 847,741 34,280 937.137 759,660 115,220 874,880 971,417 Liabilities Creditors: Arnounts falling due within one year 1,800 1.800 11.800 Net Current A55ets 757,860 115.220 873.080 959,617 Creditors.. Amounts falling due after one year Net Assets 757,860 115,220 873,080 959,617 Representing.. Funds 10 Unrestricted fvnds Fabri¢ Fund 757,860 757,860 51,904 9,157 4,900 49,259 825,837 74,161 ,527 4,336 46,756 51,904 9,157 4,900 49,259 8dls Fund Music Fund Mission Fund 757,860 115.220 873,080 959,617 These accounts were approved by the trustees on 29 O Ch4 lolf The Very Reverend Dr Mark Oakley Chairman of the Trustees
Southwark Cathedral Development Trust, Notes to the Financial Statements Accounting Policies Charity Information Southwark Cathedral Development Trust is a ¢rust incorporated in England and Wales. The registered office is Southvnrk Cathedral Developmenc Trusl London Bridge, London SE19DA. Basis of preparation These accounts have been prepared on the basis of historic cost (except that investments are shown at market value) in accordance with Charities Statement of Recommended Practice Accouncing and Reporting by Charities, Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on l January 2019 and the Charities Act 201 l. The charity is a public benefit enticy as defined by FRS 102. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 onty to the extent required to provide a crue 3nd fair view. This departure has involved following the Statement of ecommended Practice for charities apptylng FRS 102 rather than the version of the Statement of Recommended Pryactice which is referred to in the Regulatlons but which has since been withdrawn. The charity has taken advantage of the provisions in the SOFiP for charities applying FRS102 Update Bulletin I not to prepare a statement of Cash Flows. The financial statements are prepared in sterling, which is the funttional currency of the chariry. Monetary amounts in these financial statements are rounded to the nearest £. Incoming resources Recognioon of incoming resources These are included in the Statement of Financial Acuvities (SOFA) when: the trust becomes encitled to the resources: the trustees are virtualty certain they will receive the resources; and the monetary value can be measured with sufficient rellability. Incoming resources with related expenditure Where incoming resources have related expenditure (as with hjndraising or contract income) the incoming resources and related expenditure are reported gross in the SOFA. Grants ond donation5 Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources. Tax reclaims on donotions and gifts Incoming resources from tax reclaim5 are included in the SOFA at the same time as the glft to which they relate. Donoted services and faciliue5 These are only included in incoming resources {with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to rhe charity of the service or facility received. Volunteer help The value of any voluntary help received is not included in the accounts but 15 described in the trustees. annual report. Investment income is included in the accounts when receivable. Investment gains and losses include any gain or1055 on the sale of investments and any gain or loss resultlng from revaluing investments to market value at the end of the year.
Expenditure and liabilities Liability recognii?on Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Support costs These include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional rnatters. Gronts with Performance condrtions Where the chariry gives a grant with conditions for its payment being a specific level of service or output to be provided. such grints are only recognised in the SOFA once the recipient of the grant has provided the specified service or output. Gmnts Payable without performance conditions These are only recognised in the accounts when a commitment has been made and there are no conditions co be met relating to the grant which remain in the control of the charity. Suiwort Costs Support costs include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional matters and have been allocated to activiry cost categories on a basis consistrnt with the use of resources. Assets Tangible fixed assets for use by charity These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or a reasonable value on receipt. Investments Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at cru5tees' best estimate of market value. Financial Instruments The charity has eletted to apply the provisions of Section 11 '8asic Financial Instruments, and Section 12 '0rher Financial Instruments Issues, of FRS 102 tt) all of its financial instruments. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-term liquid investments with original maturities of three months or less. Going concern At the time of approving the financial statements. the trustees have a reasonable expectation that the charity has adequatr resources to continue in operational existrnce for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Charitable Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors 2$ to how they may be used. The purposes and uses of the restricted funds are set out in the note5 to the financial statements. Critical accounting judgements and estimates In the application of the charl5 accounting policies, the trustees are required to make judgements, estimaces and a5sumption5 about the carrying amount of assets and liabilities that are not readily apparent from other source5. The estimates and associated assumption5 are based on hiscorical experience and other factors that are considered to be relevanL Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revi5ion5 to accounting estimates are recognised in the period in which the estimate 15 revised where the revision affect5 only that period, or in the period of the revision and future periods where che revision affects both current and future periods. 12
Estimates Investment value- Valuation of investments at market value. based on calculation by the investment fund manager. The investments held are all shares lis on a recognised stock exchange and have an easily identifiable market value. Income Unrestrlcted Restricted Endowment Totsl Funds Total Funds Funds Funds 2023 2022 Funds Donations and legacie5 Donations and fundraising appea15 Tax recoverable under Gift Aid 700 11,689 12.389 12,309 750 700 11,689 12,389 13,059 Trading and ndraising activities Income from fvndrdisins events Investments Interest 15.340 15,340 37 Total 16.040 11.689 27,729 13.096 Expenditure of raising funds Unrestrlcted Funds Restricted Endowment Total Funds Totsl Funds Funds Funds 2023 2022 Deyelopment Office staff Fundraising events Development Office costs 40,736 19 232 1,895 42,882 1,880 1,880 ,880 1.880 Expenditure on Charitable Activities Unrestricted Funds Restricted Endowment Totsl Funds Total Funds Funds Funds 2023 2022 Grants paid to Southvrdrk Cathedrdl Other payments 110,238 32.752 142,990 35.736 200 110,238 32,752 142,990 35,936 Debtors Unrestri<ted Restritted Endowment Total Funds Total Funds Funds Funds Funds 2023 2022 Tax rec¢)verdble under Gift Aid Other debtors
Creditors: Amounts falling due within one year unrestricted Restricted Endowment Totsl Fund5 Total Funds Funds Funds Funds 2023 2022 Other creditors and accruals Deferred Income 1.800 1,800 1,800 i 0.000 1.800 1,800 11.800 Investments Unrestrictsd Restricted Endowment Totsl Funds Funds Funds Funds 2023 Market value at l January 2023 Addiiionsl(di5posals) Net increasel{decreasel on revaluation 835,626 (I10,000} 28,101 937,137 (120,000) 30.604 { i 0,000) 2.503 Market value at 31 December 2023 847,7 Employees The Development Trust does not directly employ any staff. It makes a granc to Southwark Cathedral for the annual total salary costs of che Fundraiser vtho is employed by Souchwark Cathedral on fundraising efforts. In 2022 the grant was used to pay the following amounts to Southwark Cathedral.. 2023 2022 Salaries Employer's natyonal insurance costs Employer's pension contributions 35,212 3.824 1,700 40.736 Transactions with Trustees None of the trUSe5 (or any person connected with them) received any remuneration or benefits from the charity during the year. l O Independent examiner's remuneration 2023 2022 Independent examiner's remuneration 1,800 1,800 I l Related party transactions The Very Reverend Dr Mark Oakley. the Chair. is also a trustee of the charity The Cathedral and Collegiate Church of Saint Saviour and Saint Mary Overie, Southwark (Working Name: Southwark Cathedral), which was registered on l November 2022. During the year, the trust made grants of £142,990 to Southwark Cathedral (2022: £35.736). There were no disclosable related party transactions during the year (2022 - none). 14
12 Restricted Funds 2023 Fabrit Fund Missièn Fynd Totsl Funds Totsl Funds 2023 2022 Fund Fund Income fron Donadon5 and legacies Trdding and fiJndrai5ing acDvfjd05 49$ 630 10,564 11,689 13.059 Total 495 630 10,564 13,059 EApndltyre on: Ralslng Fund$ Charkablg aCtIlieS 19 12.7S2 i O,O(tO 32,752 35,736 Totsl exptndityre 21752 i o,ooo 32.752 35,755 Net iheome l {eypenditur) before invts£m•nt 8alns 122.2571 630 564 121,Q631 122.6961 Ntt galn61(1015e¥) on Inve$tm•nts 2.503 2.S03 110,8351 Net Incoming resoue5 befor¢ transf 122.2571 630 564 2503 118,5601 Tr4nifer5 bethveen funds Net movement in fvnds 122,2571 630 564 2,503 118,5601 Fund5 reco<llladon Funds broughc fotwdrd Totsl Funds Carried Forw•rd 74,161 ,527 4.336 46,756 133,780 167.311 51,904 9.157 4,900 49,259 15.220 133.780 Restricted Funds 2022 Fabri¢ Fund Bdls Fund Mi•ion Totsl Fund¥ 2022 Fund Income fron% Donati¢ths ind Iyte Traling ndrSIng 8th¥ities no 11224 13.059 Total 720 11224 13,059 R215ing Ftsnds Charitable 8<rMtÈes 19 24.136 11,600 35.n6 24.140 11.615 35.755 Net in¢ome l (4)enthturt) b¢frye 124.025) no ¢09 (216961 Net gainlOosw) on inVertmts 15,941) (4,8941 {10.835) 129.9661 720 14.8941 {33.5311 Net movement Èn (29,966} 720 609 (4,894) (33.531) Funds reconciliation Funds bght ltyvard Total Funds Cqrrid Fvr*ard 104,127 7.807 3.n7 51.650 167.311 74.161 8.527 4.336 46.756 133.780 For an explanation of the funds listed above, see page 4. 15